"If industry and construction lead in the banks’ loan portfolio, the financial sector underpins the
economic growth. The impressive
statistics " don’t affect substantially either the public or the
business sector," Rati Abuladze, the Doctor of Economics , says in a conversation
As reported, industry and construction hold the largest share of the loan portfolio of banks.
According to Rati Abuladze, such data prove that the country needs a full renewal to recover society, business and system.
It’s worth mentioning the effect of credit products in terms of stimulating private sector. In particular, Considering the increase in the total lending, which is in line with GDP growth.
In business loans, not only the loans attracted from commercial banks, but also the share of alternate sources of financing, are to be taken into account. For instance, the share of FDI in total lending to companies is 52%, and the share of bonds - 1.8%. The volume of inactive loans has also decreased, which means improvement of financial position of companies, " Abuladze says.
He emphasizes that taking loans by the business sector is not a "bad signal". The main thing is the business to pay the loan and the current environment to give the possibility of covering loans.
According to the National Bank of Georgia, in August 2018, commercial banks’ lending of the country’s economy and physical persons amounted to GEL 22,781,593 that is GEL 136 969 more compared to July.